DEARBORN, Mich., April 27 /CNW/ -- Canadian Road Leasing Company, a
wholly owned subsidiary of Ford Credit Canada, yesterday completed a lease
securitization transaction, receiving proceeds of $2.45 billion (Canadian). A
portion of the proceeds will be held in a reserve fund for the transaction.
This lease securitization transaction included the lease of a portfolio
of vehicles (subject to the existing retail leases) by Canadian Road to a
special purpose trust and a one-time lease prepayment by the special purpose
trust to Canadian Road. The lease prepayment was financed by the trust
through borrowings of $2.45 billion (Canadian) from third parties.
Under the lease securitization transaction, Canadian Road will continue
to own the vehicles that are the subject of such transaction and will be
responsible for servicing the existing retail leases of such vehicles.
Both Canadian Road and the special purpose trust will be consolidated
with Ford Credit Canada for accounting purposes. Ford Credit Canada is an
indirect wholly owned subsidiary of Ford Motor Credit Company.
As a consequence of such consolidation, the third-party indebtedness
incurred by the special purpose trust with respect to the lease securitization
transaction will be reflected on the consolidated financial statements of Ford
Credit Canada as a liability of $2.45 billion (Canadian), reducing over the
term of the lease securitization transaction.
Canadian Road will lend the immediately available proceeds to Ford Credit
Canada. Ford Credit Canada will use a portion of the immediately available
proceeds to repay indebtedness owing to Ford Motor Credit Company, and it will
use the remainder for general corporate purposes.
Ford Motor Credit Company is one of the world's largest automotive
finance companies and has supported the sale of Ford products since 1959.
Ford Motor Credit is an indirect wholly owned subsidiary of Ford Motor
Company. It provides automotive financing for Ford, Lincoln, Mercury, Aston
Martin, Jaguar, Land Rover, Mazda and Volvo dealers and customers. More
information can be found at http://www.fordcredit.com and at Ford Motor
Credit's investor center, http://www.fordcredit.com/investorcenter/.
For further information:
For further information: Media: Chris Solie, +1-313-845-1746,
firstname.lastname@example.org, Fixed Income Investment Community: Rob Moeller,
+1-313-621-0881, email@example.com, both of Ford Motor Credit Company Web